This excerpt taken from the FL 8-K filed Aug 23, 2007.
Merchandise Inventory Decreased 1.6 Percent
NEW YORK, NY, August 22, 2007 Foot Locker, Inc. (NYSE: FL), the New York-based specialty athletic retailer, today reported financial results for its second quarter ended August 4, 2007.
Second Quarter Results
Our second quarter results reflected lower than expected sales and the impact of a strategic decision to significantly accelerate the clearance of slow-selling merchandise inventory in our U.S. stores, stated Matthew D. Serra, Foot Locker, Inc.s Chairman and Chief Executive Officer. This inventory clearance strategy resulted in markdowns increasing in our U.S. stores by $50 million, at cost, or $0.20 per share, versus the second quarter of last year. As a result, we are now better positioned to offer more exciting and compelling products for the fall season. At the same time, the division profit of our international stores increased approximately 20 percent from the same period last year, (excluding the $17 million pre-tax charge recorded in 2006 to write down long-lived assets pursuant to SFAS 144).
-- MORE --